China on Tuesday finalized a contract with a consortium, led by
the US-based Westinghouse Electric Co, to build four nuclear power
reactors in the eastern part of the country.
Neither party revealed the amount involved in the contract but
earlier media reports had estimated it to be US$8 billion.
China will use Westinghouse's AP1000 technology to build the
four reactors, two of which will be in Sanmen, Zhejiang Province,
and the others in Haiyang, Shandong Province.
The cooperation between China and the US will be "crucial" in
the development of the country's third generation nuclear power
technology, Vice-Premier Zeng Peiyan said.
"The contract will result in the first-ever use of advanced US
nuclear power technology in China," Westinghouse President and
Chief Executive Stephen Tritch said.
Based on standard Westinghouse pressurized water reactor
technology, AP1000 is "the safest, most advanced nuclear power
technology in the world". It has been chosen for at least 12
reactors in the US to be built in the next 10 to 12 years.
The deal is expected to generate at least 5,000 jobs for
Westinghouse and its consortium partners, the company said.
Work on the first reactor is expected to begin in 2009, and it
will become operational in late 2013. The other three are expected
to come on line between 2014 and 2015.
Japan's Toshiba took majority control of Westinghouse last
October. Two months later China signed an MOU with the company for
the four reactors after it outbid competitors Areva of France and
Atomstroiexport of Russia following a two-year negotiation
process.
Nuclear power is the most important electricity generating
method after thermal power and hydropower in China, and the country
has become the third-largest nuclear power producer in Asia. Only
Japan and South Korea generate more nuclear power.
All nuclear reactors in operation or being constructed in China
have employ the first- or second-generation technology from France,
Canada or Russia.
This year the country formed the State Nuclear Power Technology
Corp (SNPTC), which is mainly in charge of developing
third-generation nuclear power technologies. The registered capital
of SNPTC is 4 billion yuan (US$528.89 million).
The central government will fund 60 percent of the company, and
the rest will come from four large State-owned enterprises,
including the country's two nuclear conglomerates CNNC and China
Guangdong Nuclear Power Holding Co.
(China Daily July 25, 2007)